Rail Neer gets cheaper: Railways cuts prices by Rs 1 after GST reduction

New Delhi [India], September 20 (ANI): In order to directly pass on the benefit of the reduced GST to consumers, the Ministry of Railways on Saturday announced a cut in the maximum selling price of its packaged drinking water, Rail Neer.

According to a circular issued by the Railway Board, the price of a 1-litre bottle of Rail Neer has been reduced from Rs 15 to Rs 14, while the price of a 500 ml bottle has been brought down from Rs 10 to Rs 9. The new rates will come into effect from September 22, 2025.

The revised prices will also apply to other shortlisted packaged drinking water bottles sold at railway premises and trains. “Necessary action may be taken accordingly,” the circular said.

Earlier, the 56th GST council meeting decided to rationalise GST rates to two slabs of 5 per cent and 18 per cent by merging the 12 per cent and 28 per cent rates.

The 5 per cent slab consists of essential goods and services, including food and kitchen item like butter, ghee, cheese, dairy spreads, pre-packaged namkeens, bhujia, mixtures, and utensils; agriculture equipment; handicrafts and small industries; also medical equipment and diagnostic kits.

The 18 per cent slab consists of a standard rate for most goods and services, including automobiles such as small cars and motorcycles (up to 350cc), consumer goods like electronic items, household goods, and some professional services, a uniform 18 per cent rate applies to all auto parts.

Additionally, there is a 40 per cent slab for luxury and sin goods, including tobacco and pan Masala, products such as cigarettes, bidis, and aerated sugary beverages, as well as luxury vehicles, high-end motorcycles above 350cc, yachts, and helicopters.

Moreover, some essential services and educational items are fully exempted from GST, including individual health, family floater and life insurance; also, certain services related to education and healthcare are GST-exempt. (ANI)

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